Indian Media: China Has Not Given the Green Light! Indian Auto Industry's Rare Earth Negotiation Delegation Waits for China's Approval
According to reports from India's Economic Times and Financial Express on June 29, Indian automotive industry representatives have not yet departed for China to negotiate the supply of rare earth magnets, as they have not received formal approval from the Chinese Ministry of Commerce regarding the meeting arrangements. Rare earth magnets are widely used in automobiles, home appliances, clean energy, missile technology, and other fields. They are core components of permanent magnet synchronous motors (PMSM) in electric and hybrid vehicles, and key materials for electric power steering systems in internal combustion engine vehicles. China is a major global exporter of rare earth magnets, controlling over 90% of the global magnet processing capacity.
Starting April 4, 2025, China has implemented a "special export license system" for seven rare earth elements—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium—and their related magnets. Importers are required to provide detailed statements on final use, customer commitments, and confirm that the materials are not used for defense purposes or exported to the United States.
India is one of the largest importers of rare earth magnets from China. In the fiscal year 2024-25, India imported approximately 540 tons of rare earth magnets, with more than 80% coming from China. As of May 2025, the Indian government had endorsed nearly 30 import applications from Indian companies, but the Indian side stated that none of these companies have received Chinese approval, and no goods have been delivered so far. Additionally, about 40-50 Indian company executives obtained visas in May, but the Chinese side has not officially approved the relevant meeting arrangements to date.
The Society of Indian Automobile Manufacturers (SIAM) has urged the Indian government to take high-level diplomatic interventions to push China to expedite the approval process. It also recommended diversifying import strategies by turning to suppliers such as Vietnam and Australia, while investing in domestic rare earth processing industries. However, establishing local refining infrastructure requires long-term investment and cannot provide immediate relief for India. On June 26, the Indian Foreign Ministry confirmed that it had raised the issue of rare earth supplies with China.
Original article: https://www.toutiao.com/article/1836410848869386/
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